Lord Shiva is one of the three supreme powers, the other two being Brahma, and Lord Vishnu. He is the god of destruction, who opens the third eye and obliterates everything when sins and evils reach beyond tolerable limits. In spite of being a destroyer, he is pure and simple at heart. He becomes happy with simplicity and purity. He doesn't need any pomp or show.The origin of this temple goes back to the legend of Ramayana. According to the story, Ravana's mother, a great devotee of Lord Shiva made Indra, the king of gods so jealous that he stole the linga and threw it in the sea. Ravana's mother became very upset and decided to fast-until death. Ravana assured her that he will bring the Atma Linga of Lord shiva from Mount Kailash. He started intense meditation and worship of Lord Shiva who got pleased with his commitment. Lord Shiva offered him Atma Linga and instructed not to put it on ground at any cost. Lord Ganesha was worried and decided to infatuate Ravana by taking form of a beautiful woman. Ravana forgot about the instruction and placed the Linga at Gokarna. It is said that it got fixed there and was immovable ever since. Ravana tried to get it out from the ground but couldn't succeed. He prayed to Shiva and named the place as Mahabaleshwar (it means the strongest of all).

Other than Gokarna Mahabaleshwar, there are four other important temples- Dhareshwar, Gunavanteshwara, Murdeshwar and Shejjeshwar. These five temples are known as Panch Kshetra. Mahashivratri is the main festival when a special Yatra (travel on well-decorated chariots) is held on the main streets. Images of Lord Shiva and other deities are pulled by devotees. There are various types of poojas (divine rituals) organized at different times in the temple. Sankalpa pooja, Bilvarchana Pooja, Panchamrutabhishek pooja, Silver Nagabharana and Gold Nagabharana are the prime rituals, which the devotees gather to observe piously.